A month has gone by since the last earnings report for DISH Network Corporation . Shares have lost about 9.5% in that time frame.
Will the recent negative trend continue leading up to its next earnings release, or is DISH due for a breakout? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at its most recent earnings report in order to get a better handle on the important catalysts.
DISH Network Q4 Earnings Top, Revenues Miss Estimates
DISH Network reported mixed financial results in the fourth quarter of 2017. While the bottom line beat the Zacks Consensus Estimate, the top line lagged the same.
Quarterly net income came in at $1,385.5 million or $2.64 per share compared with $355.5 million or 73 cents in the year-ago quarter. Fourth quarter adjusted earnings per share of 57 cents were a penny higher than the Zacks Consensus Estimate.
Total revenues in the reported quarter were approximately $3,483.9 million, down 7.2% year over year lagging the Zacks Consensus Estimate of $3,546 million.
In 2017, segment-wise, subscriber-related revenues grossed $14,260.4 million, down 5.1% year over year. Equipment sales & other revenues totaled $131 million, down 26.6% year over year.
In 2017, operating expenses were a little over $12,823.610 million, down 0.5% year over year. Operating income was $1,567.8 million compared with $2,319.3 million in the year-ago quarter. EBITDA in 2017 was $2,423.1 million compared with $3,306.9 million in the prior-year quarter.
At the end of 2017, DISH Network had 13.242 million pay-TV subscribers, down 3.1% year over year. DISH TV subscribers were 11.03 million, down 9.4% year over year. Sling TV subscribers were 2.212 million, up 47.4% year over year. During 2017, DISH Network lost 0.995 million DISH TV subscribers but gained 0.711 million Sling TV Customers.
Pay-TV ARPU (average revenue per user) in 2017 was $86.43 compared with $88.66 in 2016. DISH TV churn rate in 2017 was 1.78% compared with 1.97% in 2016.
In the first half of 2017, DISH Network generated $1,493.1 million of cash from operations compared with $1,591.7 million in the prior-year period. Free cash flow in the reported period was $828.3 million compared with $866.8 million in the year-ago period.
At the end of 2017, DISH Network had $1,980.7 million of cash and marketable securities and $15,134.4 million of outstanding debt on its balance sheet compared with $5,359.3 million and $16,478.9 million, respectively, at the end of 2016. In 2017, DISH Network generated $2,347.7 million of free cash compared with $2,240.2 million in 2016.
How Have Estimates Been Moving Since Then?
In the past month, investors have witnessed an upward trend in fresh estimates. There have been four revisions higher for the current quarter.
VGM Scores
At this time, DISH has an average Growth Score of C. Its Momentum is doing a lot better with an A. The stock was also allocated a grade of C on the value side, putting it in the middle 20% for this investment strategy.
Overall, the stock has an aggregate VGM Score of B. If you aren't focused on one strategy, this score is the one you should be interested in.
Based on our scores, the stock is more suitable for momentum investors than those looking for value and growth.
Outlook
Estimates have been trending upward for the stock and the magnitude of these revisions looks promising. Notably, DISH has a Zacks Rank #3 (Hold). We expect an in-line return from the stock in the next few months.
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DISH Network (DISH) Down 9.5% Since Earnings Report: Can It Rebound?
A month has gone by since the last earnings report for DISH Network Corporation . Shares have lost about 9.5% in that time frame.
Will the recent negative trend continue leading up to its next earnings release, or is DISH due for a breakout? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at its most recent earnings report in order to get a better handle on the important catalysts.
DISH Network Q4 Earnings Top, Revenues Miss Estimates
DISH Network reported mixed financial results in the fourth quarter of 2017. While the bottom line beat the Zacks Consensus Estimate, the top line lagged the same.
Quarterly net income came in at $1,385.5 million or $2.64 per share compared with $355.5 million or 73 cents in the year-ago quarter. Fourth quarter adjusted earnings per share of 57 cents were a penny higher than the Zacks Consensus Estimate.
Total revenues in the reported quarter were approximately $3,483.9 million, down 7.2% year over year lagging the Zacks Consensus Estimate of $3,546 million.
In 2017, segment-wise, subscriber-related revenues grossed $14,260.4 million, down 5.1% year over year. Equipment sales & other revenues totaled $131 million, down 26.6% year over year.
In 2017, operating expenses were a little over $12,823.610 million, down 0.5% year over year. Operating income was $1,567.8 million compared with $2,319.3 million in the year-ago quarter. EBITDA in 2017 was $2,423.1 million compared with $3,306.9 million in the prior-year quarter.
At the end of 2017, DISH Network had 13.242 million pay-TV subscribers, down 3.1% year over year. DISH TV subscribers were 11.03 million, down 9.4% year over year. Sling TV subscribers were 2.212 million, up 47.4% year over year. During 2017, DISH Network lost 0.995 million DISH TV subscribers but gained 0.711 million Sling TV Customers.
Pay-TV ARPU (average revenue per user) in 2017 was $86.43 compared with $88.66 in 2016. DISH TV churn rate in 2017 was 1.78% compared with 1.97% in 2016.
In the first half of 2017, DISH Network generated $1,493.1 million of cash from operations compared with $1,591.7 million in the prior-year period. Free cash flow in the reported period was $828.3 million compared with $866.8 million in the year-ago period.
At the end of 2017, DISH Network had $1,980.7 million of cash and marketable securities and $15,134.4 million of outstanding debt on its balance sheet compared with $5,359.3 million and $16,478.9 million, respectively, at the end of 2016. In 2017, DISH Network generated $2,347.7 million of free cash compared with $2,240.2 million in 2016.
How Have Estimates Been Moving Since Then?
In the past month, investors have witnessed an upward trend in fresh estimates. There have been four revisions higher for the current quarter.
DISH Network Corporation Price and Consensus
DISH Network Corporation Price and Consensus | DISH Network Corporation Quote
VGM Scores
At this time, DISH has an average Growth Score of C. Its Momentum is doing a lot better with an A. The stock was also allocated a grade of C on the value side, putting it in the middle 20% for this investment strategy.
Overall, the stock has an aggregate VGM Score of B. If you aren't focused on one strategy, this score is the one you should be interested in.
Based on our scores, the stock is more suitable for momentum investors than those looking for value and growth.
Outlook
Estimates have been trending upward for the stock and the magnitude of these revisions looks promising. Notably, DISH has a Zacks Rank #3 (Hold). We expect an in-line return from the stock in the next few months.